DOE's $2.19B Oak Ridge Cleanup Contract Awarded to United Cleanup Oak Ridge LLC
Contract Overview
Contract Amount: $2,192,713,847 ($2.2B)
Contractor: United Cleanup OAK Ridge LLC
Awarding Agency: Department of Energy
Start Date: 2023-05-17
End Date: 2032-02-27
Contract Duration: 3,208 days
Daily Burn Rate: $683.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: OAK RIDGE RESERVATION CLEANUP CONTRACT TASK ORDERS
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $2.19 billion to UNITED CLEANUP OAK RIDGE LLC for work described as: OAK RIDGE RESERVATION CLEANUP CONTRACT TASK ORDERS Key points: 1. The contract is for remediation services at the Oak Ridge Reservation. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. The contract type is Cost Plus Award Fee, which incentivizes performance. 4. The total value is substantial, reflecting the scale of environmental cleanup required.
Value Assessment
Rating: good
The contract value of $2.19 billion over its period of performance is significant. Benchmarking against similar large-scale environmental remediation contracts is difficult without more granular cost data, but the award suggests the Department of Energy found the proposed costs to be reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, allowing multiple qualified contractors to bid. This competitive process is expected to drive price discovery and ensure the government receives fair value for the services rendered.
Taxpayer Impact: The competitive nature of the award aims to optimize taxpayer spending by selecting the most cost-effective and capable offeror for this extensive cleanup operation.
Public Impact
Environmental cleanup of legacy nuclear waste sites is critical for public health and safety. The long-term nature of the contract (ending 2032) ensures continuity of essential services. Successful execution of this contract will mitigate environmental risks and restore land for future use. The project's success relies on stringent oversight and adherence to safety protocols.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex cleanup operations.
- Long contract duration may lead to scope creep or evolving requirements.
- Reliance on a single awardee for a critical, long-term mission.
Positive Signals
- Awarded through full and open competition.
- Cost Plus Award Fee structure incentivizes performance.
- Significant investment in critical environmental remediation.
Sector Analysis
This contract falls within the environmental remediation sector, specifically addressing legacy waste at a major Department of Energy site. Spending in this sector is driven by regulatory requirements, historical contamination, and national security needs. Benchmarks are highly project-specific due to unique site conditions.
Small Business Impact
The data indicates this contract was awarded via full and open competition and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were the primary focus of this specific award, though they may participate as subcontractors.
Oversight & Accountability
The Department of Energy is responsible for overseeing this contract. Given the complexity and long duration, robust oversight mechanisms, including performance monitoring, cost controls, and compliance checks, will be crucial to ensure accountability and effective use of taxpayer funds.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to the complexity of environmental remediation.
- Long contract duration increases the risk of scope creep and evolving regulatory requirements.
- Dependence on a single entity for a critical, long-term environmental mission.
- The 'Cost Plus Award Fee' structure, while incentivizing, can sometimes lead to higher overall costs if not tightly managed.
Tags
remediation-services, department-of-energy, tn, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.19 billion to UNITED CLEANUP OAK RIDGE LLC. OAK RIDGE RESERVATION CLEANUP CONTRACT TASK ORDERS
Who is the contractor on this award?
The obligated recipient is UNITED CLEANUP OAK RIDGE LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.19 billion.
What is the period of performance?
Start: 2023-05-17. End: 2032-02-27.
What are the key performance indicators (KPIs) used to evaluate United Cleanup Oak Ridge LLC's performance under this Cost Plus Award Fee contract, and how do they align with the overall cleanup objec
The specific KPIs are not detailed in the provided data. However, under a Cost Plus Award Fee structure, KPIs typically focus on achieving milestones, meeting safety standards, environmental compliance, cost control, and timely completion of remediation tasks. These metrics are designed to incentivize the contractor to perform efficiently and effectively, directly supporting the overarching goals of safely cleaning up the Oak Ridge Reservation and minimizing environmental impact.
What specific remediation technologies and approaches will be employed by United Cleanup Oak Ridge LLC, and what are the associated risks and mitigation strategies for these methods?
The provided data does not specify the remediation technologies. However, Oak Ridge cleanup likely involves a range of methods such as soil excavation, groundwater treatment, demolition of contaminated structures, and waste disposal. Risks could include unforeseen contamination, worker safety hazards, and environmental releases. Mitigation strategies would involve thorough site characterization, robust safety protocols, advanced monitoring systems, and contingency planning for unexpected discoveries or incidents.
How does the $2.19 billion contract value compare to historical spending on similar large-scale environmental cleanup projects managed by the Department of Energy?
The $2.19 billion figure represents a significant investment, typical for large, multi-year environmental cleanup efforts at major federal facilities like the Oak Ridge Reservation. While direct comparisons are challenging due to unique site complexities, historical data from DOE's Office of Environmental Management shows numerous contracts in the hundreds of millions to billions of dollars for similar large-scale remediation programs across the nuclear weapons complex.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 20876
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,233,198,524
Exercised Options: $3,233,198,524
Current Obligation: $2,192,713,847
Actual Outlays: $1,928,481,829
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303322DEM000067
IDV Type: IDC
Timeline
Start Date: 2023-05-17
Current End Date: 2032-02-27
Potential End Date: 2032-02-27 00:00:00
Last Modified: 2026-04-10
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